Mkpoikana Udoma
Port Harcourt — Nigeria’s external reserves have received a significant boost as the Central Bank of Nigeria, CBN, confirmed the acquisition of responsibly sourced gold refined to London Bullion Market Association Good Delivery standards, raising the country’s gold holdings to $3.5 billion.
The development marks a major milestone in Nigeria’s reserve diversification strategy and reflects a growing shift toward leveraging domestic mineral resources to strengthen macroeconomic stability.
The gold was sourced locally and aggregated by the Solid Minerals Development Fund, SMDF, under the National Gold Purchase Programme, NGPP, a framework designed to integrate artisanal and small-scale miners into a responsible sourcing ecosystem aligned with global standards.
Speaking at a workshop on strategies to maximise the economic benefits of Nigeria’s minerals, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, disclosed that the apex bank acquired the monetary-grade gold in naira, with pricing linked to London Bullion Market benchmarks.
According to him, the transaction structure allows the country to strengthen its foreign reserves without deploying foreign currency.
“This structure helps preserve Nigeria’s foreign exchange while strengthening reserves,” Cardoso stated.
He noted that by purchasing domestically refined gold using local currency, the programme supports reserve accretion, macroeconomic stability and stronger diversification of Nigeria’s external reserves.
Cardoso explained that global reserve management strategies are increasingly evolving, with central banks prioritising resilience amid rising geopolitical tensions and market volatility.
“Gold is increasingly viewed as a critical hedge against inflation and volatility in the global economy,” he added.
Executive Secretary of the Solid Minerals Development Fund, Fatima Umaru Shinkafi, said the successful delivery of LBMA-standard gold demonstrates the effectiveness of the organisation’s formalisation framework and supply-chain due diligence processes.
A representative of the World Gold Council, Kurtuluş Taşkale Diamondopoulos, commended the collaboration between the CBN and SMDF, noting that the NGPP aligns with the twelve London Principles for responsible artisanal and small-scale gold sourcing.
She said the partnership between the CBN as sole off-taker and the SMDF as fiscal and supply-chain manager offers a strong model for countries seeking to formalise and strengthen their gold sectors.
President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, reaffirmed the institution’s commitment to financing and formalising Nigeria’s mineral sector.
Zubairu stressed the importance of accurate geological data and stronger mineral processing infrastructure to attract investment and improve gold recovery across the country.
The Domestic Gold Purchase Programme forms part of the CBN’s broader strategy to enhance the quality of Nigeria’s reserves, reduce external vulnerabilities and position the country’s mineral wealth as a pillar of long-term economic resilience.
